Nyota Minerals moves closer to mining licence award in Ethiopia

Saturday, January 19, 2013 by Philip Whiterow


Nyota Minerals’ (LON:NYO) Tulu Kapi gold project in Ethiopia has taken another step forward after the country's mining ministry confirmed its definitive feasibility study (DFS) met the requirements for a mining licence.

Nyota added that after talks with the ministry over the fiscal and legal aspects of the Tulu Kapi plans, both parties believe that they are close to finalising the terms for the issuance of a mining licence.

The company has also received an extension of its exploration licence, which it said means it can conclude preliminary preparations for the resettlement of people living within the proposed mining licence area and further exploration at Tulu Kapi to optimise the project.

This includes the Feeder Zone drill programme, where results are anticipated very shortly, it said.

Richard Chase, Nyota’s chief executive, added: "The Ethiopian Government's acknowledgement that our DFS and the ESIA [environmental and social impact assessment] comply with all requisite regulations for the issue of a mining licence means that we can now focus on negotiating the terms on which such a licence will be granted and raising the necessary funding.

“We are one step closer to developing Ethiopia's next gold mine."


Background: CEE owns 12% of Nyota and has 4 other drill sites in Ethiopia after it bought out Sheba.